A new economic model was created few months ago within the world of e-commerce: subscription-based e-commerce. Known mainly in box form, it is reaching and increasing number of sectors: ready-to-wear clothes, cosmetics, food products...

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Are you ready for subscription-based e-commerce?

This is a business model that combines e-commerce and subscription retail. So what is the concept really all about?

Subscription-based e-commerce is an excellent way for brands and retailers to begin a process of getting to know their clientèle and establish customer loyalty: the real strength of this economic system is simply its powerful ability to generate customer loyalty!

Another advantage is that subscription-based e-commerce enables you to benefit from recurring monthly revenue without having to rely on the acquisition of new customers. What's more, subscription-based e-commerce encourages consumers to indulge and to re-purchase your products if they are impressed.

It stands to reason that there is no-one more loyal than a customer who pays a subscription, but be careful, there are a few down sides to the subscription nowadays: customers are developing an increasing dislike to being tied in. As a result you have to grant him a great deal of freedom; he must be able to cancel his subscription whenever he sees fit!

If at the beginning of the month your customer no longer wishes to receive the product or products for which he has subscribed, it should not have to be delivered nor billed for. Nevertheless, the likelihood that the customer will continue to use the service is much more important than is the case with "traditional" e-commerce! It is the assurance of regular monthly turnover, alongside the ability to manage your stock levels.

Our Advanced Subscription module for PrestaShop takes into account all of these precepts and saves you the precious time that would be required to implement them manually.

The reason that the paid subscription model is developing so quickly within the area of e-commerce is that retail sites appear to find in it an effective solution by which to counteract one of the main issues that chips away at their profitability: delivery fees

Amazon Premium, Fnac Express+, Cdiscount à volonté... Many e-commerce retailers are now launching their own paid subscription services. In order to grasp the reason behind the phenomenon, one need only remember the fact that delivery fees remain the leading cause of abandoned shopping carts and that, on average, a subscribing customer is twice as lucrative as a non-subscribing customer.

A few figures to quantify the impact of delivery on e-business:

87% of online shoppers systematically search for a means by which to avoid having to pay shipping fees (searching for a promotional code, addition of a product to the cart...).

44% abandon their purchases purely and simply on account of these fees

66% switch to a different retail site in search of delivery conditions that are acceptable to them.

Converting customers into subscribers enables online retailers to save time and money compared to traditional methods of recovering customers and generating customer loyalty, as it allows you automate part of the customer relationship. This saving can then be allocated to a free delivery service reserved solely for your subscribers, thus eliminating this purchasing deterrent and in turn achieving much greater conversion rates.

Objective: to generate long-term customer loyalty

In addition to the appeal of novelty, subscription-based e-commerce represents a formidable double-edged sword for brands that are reliant on distribution networks and that are targeting growth. In actual fact, first and foremost the subscription principle allows retailers to generate recurrent turnover and a stable operating account.

Thus, while subscription-based e-commerce may have cut its teeth with samples and travel-sized products, various other products now also appear to lend themselves to the model: in ready-to-wear clothing, cosmetics, culture and leisure, but also products intended for regular consumption such as mineral water or hygiene products (baby nappies for instance).

Optimization of supply and of your logistics

The subscription enables you to achieve an improved rate of re-purchase, thus allowing you to purchase from your suppliers more efficiently. In fact, our module will enable you to accurately predict which products will sell, in which quantity and at which frequency.

A great example of the use of our Advanced Subscription module for the sale of coffee capsules:

http://www.abonnement-cafe.com/

Qué les gustará a tus clientes

For the consumer, this subscription form is a unique opportunity to regularly and automatically receive the products that he habitually consumes at an attractive price, and without having to worry about re-stocking.

Advanced Subscription for PrestaShop uses the Stripe payment gateway, which guarantees that you are up and running quickly and economically. A free account on stripe.com is required in order to be able to offer a subscription service in your PrestaShop store. No commissioning fee, monthly subscription or hidden fees. Only pay for what you use, and enjoy a real-time overview of the imposed fees per transaction. For more information regarding the pricing of Stripe: https://stripe.com/fr/pricing

PrestaModule is the first company to have been dedicated exclusively to the development of PrestaShop modules. They are a key player on Addons. Their modulesare technically evolved and have a tons of really cool features. Two of them has been awarded at Best Modules Awards ceremony. It must be clear to you now that buying a module designed by PrestaModule means choosing quality, a follow-up service and enjoy one of the most responsive technical or commercial support out there.﻿